Tax Bill Planning Seminars - Join Us!

I wanted to provide you a quick update on a couple of items in between football games - most noteworthy was the RMA's announcement of harvest prices for all DPea types this past Thursday. Additionally, invite and make you aware of a couple tax bill seminars we will be sponsoring next month in Colfax and Walla Walla.

2018 Tax Bill Planning Seminars:

NEWS:

Canola - Is this crop for you and your operation? Many are giving careful consideration to implementing canola into their farming rotation. There are 3 WSU oilseed workshops that will be held the week of January 22nd in our region. A canola college is planned for this coming Friday in Enid, OK. Read more about this small, but mighty crop...

Continuing Resolution - Discussions are ongoing for Congress as they deal with the looming 1/19/18 deadline for federal government funding. As indicated previously, safety net issues for cotton and dairy maybe part of an appropriations supplement, which is believed to help ease budgetary pressures for the upcoming Farm Bill. There is belief that passage of a new farm bill exists, if action is taken up in early 2018. The next farm bill needs your attention...

Crop Insurance - I've included a link to Crop Insurance Research Bureau (CIRB) which provides information for each state, but also facts vs myths pertaining to crop insurance. Perhaps you can use as a resource for defending crop insurance to those that are less informed...

Dry Peas - RMA announced the harvest prices for the 2017 pulse crops. The harvest prices were perhaps somewhat surprising, given what the current cash market is and has been since harvest. There is a potential revenue loss payment on small garbs, compare your production to count vs your guarantee, and advise immediately if you're in a loss scenario. Lentil and large garbs producers will receive additional loss monies if there was a production loss previously paid. Crop carrier systems will automatically calculate and pay the additional monies.

How to determine a revenue loss and production to count (PTC):

Related to the prices for dpea types is the ongoing tariffs that have been imposed by India's government, which has significantly curtailed demand and sales as they prop up their domestic producers and supply.

Markets - USDA report released on Friday wasn't short of surprises, whether it be raising the corn yield again or not decreasing the fall planted wheat acres sufficiently. Conversations I've had with individuals in the heart of HRW country have indicated at least a 10% reduction in fall wheat when compared to acres planted last year; those acres going to cotton again on their farms in 2018, as had occurred in 2017. A few months back I wrote that there was no chance for corn to exceed 175 bu/a average, given the amount of replanted corn acres in the heart of the eastern corn belt plus the weekly crop conditions report - well, USDA says the national corn yield was a whopping 176.6 bpa, 2bpa more than last year...I stand corrected. Innovation, ingenuity and technology have exceeded my expectations...I prefer bird well done.

There's a lot of corn and wheat in the country, as USDA indicated with their increasing of ending stocks. The question I have is feed usage - December had 6% more cattle on feed in 2017 vs 2016; placements are 10% higher...what is being fed to these animals? And what about ethanol? That industry had been churning out record production during the summer months...I digress.

Livestock continues their run, pork exports set a new record value for the month of November. Beef exports are strong as well, up 4% in November and the highest level in 3 years, where a full-year record value is expected.

Crude oil prices have reached a 3 year high, the decrease in the dollar has had some play in this as did the decrease in inventories.

Exports for all crops have lagged of late, yet the dollar is tumbling in value and at a 4 month low. The shortage of Australian bushels, reduced last year's production and this year's drought, has put US white wheat at a more competitive price when compared to Australian wheat. USDA has taken notice and has increased projected white wheat exports for the year.

Tax Bill - Paul Nieffer, a national speaker and contributor to the Farm Journal network, has agreed to share his thoughts on the recently enacted tax law. Perhaps you've already caught some of his interviews and insights aiding producers with their planning preparation for the 2018 tax year filing. Please plan to attend either the Colfax or Walla Walla meetings we're hosting the 12th and 15th of February. A read on the new bill from an insurance perspective...

Weather -The area of extreme drought has moderately decreased since the last report; however, the area of severe drought has expanded across the US. This is typically a dry time of year for the southern plains, though most areas have not had any significant, measurable rain since late September/early October. Speaking of moisture, I've had conversation with several who have shared their rainfall totals so far this December and January...some impressive totals received for this crop year in areas. I hope your neck of the woods is seeing the same. Lord willing, the precipitation continues as LaNina influences weather in our hemisphere...

Until next time, go Vikes...

“The only place success comes before work, is in the dictionary.”…Vince Lombari